American Airlines threatens to cancel labor contracts
NEW YORK | A lawyer representing American Airlines says that if the company can’t reach cost-cutting deals with labor unions, it will ask a federal bankruptcy judge to throw out union contracts.
The company will seek to void several collective-bargaining agreements that have been under intense negotiations since American and parent AMR Corp. filed for bankruptcy protection Nov. 29.
Attorney Harvey Miller said Thursday that both the company and the unions have negotiated in good faith, but he doesn’t expect American Airlines parent company AMR Corp. and the unions to reach consensus.
Unions for pilots, flight attendants and ground workers have been expecting just such a move.